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TMI Blog2025 (3) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... dissolved firm, the impugned notice and order would not be tenable more particularly, when the petitioner in the reply to the show cause notice issued u/s 148A (b) has provided all the information including dissolution deed before the respondent AO.
In view of the settled legal position as held in case of Maruti Suzuki Limited [2019 (7) TMI 1449 - SUPREME COURT] the impugned notice and the order are required to be quashed and set aside. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,630/- which were not disclosed and no return of income was filed by the said firm. 7. In response to the show cause notice by letter dated 23.03.2022, the petitioner informed the respondent that the firm was dissolved with effect from 01.04.2017 and the business was carried out by the petitioner under the same trade name as in capacity of the proprietor. It was further informed that necessary requests to the bank were made to update the PAN details of the account of M/s AMC Corporation and the sales turn over as disclosed by the petitioner as proprietor of AMC Corporation was far more than the cash deposit referred in the notice. It was also pointed out that the transactions for that year under consideration i.e. for Financial Year 2017- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration which is duly reflected in the return of income filed for Assessment Year 2018-2019. 11. It was further submitted that for subsequent years i.e. Assessment Year 2019-2020 similar notices were issued for reassessment in the name of partnership firm, however, such proceedings were dropped by passing the order under section 148A (d) of the Act on 30.03.2023. 12. Learned advocate Mr. Balani invited the attention of the Court to page 196 of the petition at para no. 7 of such order to point out that in similar facts, the reassessment proceedings in the name of non existing firm were dropped which reads as under: "7. The details submitted by the assessee has been considered carefully and it is found that Smt. Pannaben Dilipbhai Modi is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could not have taken a different view to assume the jurisdiction for reassessment of the non existing partnership firm. 14. Reliance was also placed on the decision of this Court in case of Nathalal Hemabhai Patel v. Income Tax Officer, Ward 1, Mehsana rendered on 30.09.2024 in Special Civil Application No. 11214 of 2023 to submit that in similar facts it was held by this Court relying upon the decision of Hon'ble Apex Court in case of Commissioner of Income Tax, New Delhi v. Maruti Suzuki India Limited reported in (2019) 107 taxmann. Com 375 (SC) for quashing and setting aside the notice issued under section 148 of the Act for reassessment. 15. On the other hand learned advocate Ms. Maithili D. Mehta for the respondents submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cularly, when the petitioner in the reply to the show cause notice issued under section 148A (b) of the Act has provided all the information including dissolution deed before the respondent Assessing Officer. 18. In view of the settled legal position as held by the Hon'ble Apex Court in case of Maruti Suzuki Limited (supra), the impugned notice and the order are required to be quashed and set aside. 19. Accordingly, the petition succeeds and the impugned notice as well as the order dated 31.03.2022 are hereby quashed and set aside. However, it would be open for the respondent to initiate the proceedings, if required, under the provisions of the Act against the petitioner in accordance with law. 20. Rule is made absolute to the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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